Correlation Between G III and Braemar Hotels

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Can any of the company-specific risk be diversified away by investing in both G III and Braemar Hotels at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining G III and Braemar Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G III Apparel Group and Braemar Hotels Resorts, you can compare the effects of market volatilities on G III and Braemar Hotels and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in G III with a short position of Braemar Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of G III and Braemar Hotels.

Diversification Opportunities for G III and Braemar Hotels

-0.53
  Correlation Coefficient

Excellent diversification

The 3 months correlation between GIII and Braemar is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding G III Apparel Group and Braemar Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Braemar Hotels Resorts and G III is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on G III Apparel Group are associated (or correlated) with Braemar Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Braemar Hotels Resorts has no effect on the direction of G III i.e., G III and Braemar Hotels go up and down completely randomly.

Pair Corralation between G III and Braemar Hotels

Given the investment horizon of 90 days G III Apparel Group is expected to generate 1.55 times more return on investment than Braemar Hotels. However, G III is 1.55 times more volatile than Braemar Hotels Resorts. It trades about 0.12 of its potential returns per unit of risk. Braemar Hotels Resorts is currently generating about -0.1 per unit of risk. If you would invest  2,669  in G III Apparel Group on September 10, 2025 and sell it today you would earn a total of  369.00  from holding G III Apparel Group or generate 13.83% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

G III Apparel Group  vs.  Braemar Hotels Resorts

 Performance 
       Timeline  
G III Apparel 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in G III Apparel Group are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, G III demonstrated solid returns over the last few months and may actually be approaching a breakup point.
Braemar Hotels Resorts 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Braemar Hotels Resorts has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Preferred Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

G III and Braemar Hotels Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with G III and Braemar Hotels

The main advantage of trading using opposite G III and Braemar Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G III position performs unexpectedly, Braemar Hotels can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Braemar Hotels will offset losses from the drop in Braemar Hotels' long position.
The idea behind G III Apparel Group and Braemar Hotels Resorts pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Content Syndication module to quickly integrate customizable finance content to your own investment portal.

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